Section 109: Rehabilitation or reorganisation of insurer

109. Rehabilitation or reorganisation of insurer (1) The conservator shall seek authority from the Commission to— (a) rehabilitate the insurer and return it to management; or (b) reorganise the insurer in accordance with this section. (2) Where the Commission authorises the conservator to proceed to reorganise the insurer, the conservator shall, after granting a hearing to all interested parties, propose a reorganisation plan and send a copy of it to all policy holders and other creditors who shall not receive full payment under the plan. (3) The copy of the reorganisation plan shall be accompanied by a notice stating that where the reorganisation plan is not refused in writing within a period of 30 days by persons holding not less than one third of the aggregate amount of claims of policy holders and creditors comprising not less than one third in value of the aggregate of the claims of creditors other than subordinated creditors, the conservator shall, with the approval of the Commission, proceed to carry out the reorganisation plan. (4) The approval of a reorganisation plan by the Commission shall be subject to its finding that the reorganisation plan shall— (a) be equitable under the circumstances, to policy holders, other creditors and shareholders; (b) provide for bringing in new funds so as to meet the minimum solvency margin in accordance with section 15; (c) provide for the removal of any officer or employee responsible for the circumstances which necessitated the appointment of the conservator. I15 – 69 [Issue 7] Insurance Act (5) Where in the course of reorganisation it appears that circumstances render the plan inequitable or its execution undesirable, the conservator may recommend the Commission to petition the Court under section 68.